Cloud Performance Management System: Everything You Need To Know

The advancement in technology has changed the way how we carry out day-to-day business operations.

Earlier organizations used to have an in-house team completely dedicated to managing on-premises data centers that hosted several organizational applications. However, things have changed now.

The majority of organizations today have switched from the use of traditional on-premises data centers to cloud-based applications. Human capital management is one of the areas which has witnessed this change.

In this blog, we will be going through a cloud performance management software system – a performance management system based on cloud technology. 

Understanding Cloud Performance Management Systems 

Suppose your organization has implemented an effective performance management system following best practices.

However, this system is hosted on servers located on your organization’s premises, making it accessible only within the organization’s local network.

Now, imagine you could access this performance management software from anywhere in the world with internet access.

This is where the concept of a cloud performance management system comes in.

A cloud performance management software system functions similarly to a traditional performance management system but is hosted on cloud infrastructure instead of on-premises servers.

This means users can access the system through any device with internet connectivity, typically via web browsers or mobile applications.

Cloud vs. On-premise-based Performance Management System 

Whether it be a cloud-based performance management software system or on-premise-based performance management, the overall functionality that it offers remains the same.

The only major difference lies in terms of accessibility. Let’s have a look at the difference between cloud vs. on-premises-based performance management systems, to make it more clear,

Cloud-based performance management systems 

1. Accessibility: Cloud performance management systems are hosted on a cloud infrastructure. This means it can be assessed through any of the devices from any part of the world with the help of the internet. 

2.Infrastructure: The performance management system software and its data are hosted on the cloud infrastructure (servers) that the cloud service provider manages. So, organizations need not maintain and look after any infrastructures related to server management. 

3.Security: Cloud performance management systems security depends on both the cloud service provider and the organization. Both of these parties do not have full control over the entire system, cloud service provider handles infrastructure security while organizations manage system security.

4.Cost: As the cloud service provider provides the entire cloud infrastructure, the cost of infrastructure as well as maintenance lies on the service provider. Organizations need to pay monthly or annual subscription fees only. 

5.Scalability: Cloud-based performance management systems are highly scalable. The resources can be easily scaled up or down based on the requirements of the organization without significant investments. 

On-premise-based Performance Management Systems 

1.Accessibility: The on-premise-based performance management systems are likely to work within the organization’s local network. Mostly in computers where the software is installed and the organization’s private network. Remote access could require additional configuration and can be costly.

2.Infrastructure: Organizations need to invest in building infrastructures within organizational premises as software and data are hosted within serves located within organizations. The maintenance and upgrades also need to be carried out by organizations. 

3.Security: The entire control of infrastructure, data, and applications associated with the system remains with the organization. It can implement security measures as well as protocols for the security of the system. 

4.Cost: The entire cost of infrastructure, maintenance as well as upgrades is upon the organization itself. This includes the upfront costs associated with the initial installation of hardware infrastructure along with maintenance and variable costs. 

5.Scalability: While on-premise-based performance management systems are scalable, this comes with additional costs. This makes it hard for organizations to easily scale up or down their resources dedicated to performance management systems. 

Factors to consider while choosing a Cloud Performance Management System 

After going through the differences between cloud and on-premises-based performance management systems, there might be confusion about which one is right for you.

So, based on the differences, let’s find out when might be the cloud performance management software system right for your organization.

1.Accessibility Requirements: Cloud-based performance management software system can be suitable for your organization in case your workforce is remote-based. In case you want to track, measure, and analyze the performance of your employees no matter where they work, it can help you with that.

2.Costs and Resources: As we discussed earlier, on-premises-based performance management systems have upfront as well as recurring costs associated with them. So in case you have a limited budget and resources but want to implement the system in your organization, it can suit your needs.

3.Scalability and Control: When compared to on-premise-based performance management systems, cloud-based systems are quite scalable. You can easily scale up or down the resources based on your organizational requirements. But you might not have full control over all the cloud resources. So, the selection depends upon your specific requirements. 

4.Integrations:  One of the biggest advantages of cloud performance management is its ability to integrate with other cloud-based applications.

You can easily integrate a cloud-based performance management system with other cloud-based human capital management (HCM) systems such as HRIS, LMS, and more. This might be an added advantage for your organization.

Conclusion 

A cloud performance management system has the same core functionalities as an on-premise-based system. The overall feature of a performance management system such as workforce progress tracking and development remains the same.

The only difference is that it is hosted in a cloud infrastructure as opposed to servers maintained at the premises of the organization.

The biggest advantage of using a cloud performance management software system lies in terms of its accessibility. It enables users to access the performance management tool from anywhere they like with the help of an internet connection.

The other benefits lie in terms of reduced costs associated with infrastructures, enhanced security as well as scalability. 

The decision of whether you should be using a cloud performance management system or not depends upon the needs of your organization.

If your organization has a remote-based workforce, limited budget, and resources, and wants higher scalability as well as easy integrations, then it can perfectly serve your needs.